SIA report shows significant investment in semiconductor manufacturing

United States will triple its domestic semiconductor manufacturing capacity from 2022 to 2032 fueled by the CHIPS and Science Act (CHIPS).
The U.S. will grow its share of advanced logic (below 10nm) manufacturing to 28 percent of global capacity by 2032, up from 0 percent in 2022, a paid report by the Semiconductor Industry Association (SIA), in partnership with the Boston Consulting Group (BCG) indicated.

America is projected to capture 28 percent of total global capital expenditures (capex) from 2024-2032, ranking second to Taiwan (31 percent). In the absence of the CHIPS Act, the U.S. would have captured only 9 percent of global Capex by 2032, according to the report.

America’s 203 percent projected increase in fab capacity from 2022 to 2032 stands in stark contrast to its modest 11 percent increase from the previous decade (2012-2022), which ranked last among all major chip-producing regions, according to the SIA/BCG report.

The U.S. share of the world’s chip manufacturing capacity will increase from 10 percent in 2022 — when the CHIPS and Science Act was enacted — to 14 percent by 2032, marking the first time in decades the U.S. has grown its domestic chip manufacturing footprint relative to the rest of the world. In the absence of CHIPS enactment, the U.S. share would have slipped further to 8 percent by 2032, according to the report.

The U.S. CHIPS Act committed $39 billion in incentives for semiconductor manufacturing, plus a separate advanced manufacturing investment tax credit.

The European Union unveiled the European CHIPS Act, China initiated the third phase of its Integrated Circuit (IC) Industry Investment Fund, and various other incentive programs have emerged in Taiwan, Korea, Japan, India, and around the world.

The report projects around $2.3 trillion in Capex in 2024-2032, compared to $720 billion in the decade prior to enactment of the CHIPS Act (2013-2022).

“The CHIPS and Science Act has put America on course to significantly strengthen domestic semiconductor production and R&D, but more work is needed to finish the job,” said John Neuffer, SIA president and CEO.

The CHIPS Act’s manufacturing incentives have sparked substantial investments in the U.S. Companies in the semiconductor ecosystem have announced more than 80  projects across 25 U.S. states — totaling nearly $450 billion in private investments — since the CHIPS Act was introduced.